Medtronic to buy Spinal Dynamics

MINNEAPOLIS (July 3)—Medtronic Inc. plans to acquire Seattle-headquartered Spinal Dynamics Corp. by the end of 2002 to give it the rights to a new elastomer-based artificial cervical disc. The purchase will cost Medtronic about $269.5 million in cash and stock. The medical device maker has held a minority interest in Spinal Dynamics since February 2001 and decided to acquire the entire business, in part because of Spinal Dynamics' Bryan Cervical Disc System, a product that is currently undergoing human clinical evaluation, a Medtronic spokesman said. The implanted prosthesis is designed to replace and mimic the flexibility and shock-absorbing characteristics of natural intervertebral discs.